ISLAMABAD: Apple has updated its App Store rules and fee structure in the European Union to comply with an antitrust order under the EUโs Digital Markets Act.
The changes come after the European Commission fined Apple โฌ500 million in April and warned of daily penalties for non-compliance.
Under the revised system, developers using the App Store will pay a 20% processing fee on in-app purchases.
Small businesses enrolled in Appleโs special program may see that fee reduced to 13%.
Crucially, developers now have the freedom to direct users to alternative payment platforms outside the App Store.
However, they will still be charged fees ranging from 5% to 15% for such off-platform transactions.
Apple Seeks Compliance to Avoid Costly Fines
Apple was given 60 days by the European Commission to comply with the new rules or face daily fines of up to 5% of its average global revenueโroughly โฌ50 million per day.
In a public statement, Apple expressed its disagreement with the Commissionโs decision and confirmed plans to appeal.
Despite that, the company said it had implemented the required changes to avoid further financial penalties.
The EUโs antitrust body will now assess Appleโs updates for full compliance with the Digital Markets Act.
The Commission also invited feedback from developers and other stakeholders before determining next steps.
Critics Say Changes Fall Short of Fair Competition
Industry voices have criticized Appleโs revised model.
Epic Games CEO Tim Sweeney, a longtime critic and legal opponent of Apple, called the changes โa mockery of fair competition.โ
He argued that Apple continues to โtaxโ rival payment systems and cripple them commercially within its ecosystem.
Apple has not yet issued a response to Sweeneyโs comments.
The regulatory scrutiny in the EU is expected to set a precedent that could influence Appleโs practices in other global markets.
